Energy Bill (HL Bill 30)

(ii) any other specified conditions are met (whether in
relation to the certificate, the person presenting it or
other matters);

(i) provide for how the relevant purchasing body is to determine
5whether specified conditions are met;

(j) provide that the certificate purchase obligation in relation to a
certificate is to be discharged by such a deadline as may be
specified or determined in accordance with the order;

(k) authorise the relevant purchasing body to determine the
10manner in which payments under the certificate purchase
obligation are to be made;

(l) authorise the relevant purchasing body to deduct from
payments specified descriptions of fees or charges incurred in
making the payments;

(m) 15provide for a certificate purchase levy (see section 32P);

(n) authorise the Secretary of State to make payments for the
purpose of enabling the certificate purchase obligation to be
discharged;

(o) impose such other obligations, or confer such other functions,
20on the relevant purchasing body as the Secretary of State
considers appropriate.

(3) Once the redemption value in relation to a certificate is paid (less any
deductions permitted under the order by virtue of subsection (2)(l)), the
certificate purchase obligation in relation to that certificate is
25discharged (and the certificate is not to be presented for payment
again).

(4) For the purposes of carrying out its functions under a certificate
purchase order, the relevant purchasing body may—

(a) require a person presenting a certificate to provide such
30information or documentation as the body may reasonably
need for such purposes, and

(b) determine the form in which, and the time by which, such
information or documentation is to be supplied.

(5) The certificate purchase obligation does not apply in relation to a
35certificate unless the person presenting the certificate has complied
with any requirements imposed under subsection (4).

32P Certificate purchase levy

(1) A certificate purchase order may provide for a certificate purchase levy
to be charged in connection with the provision of payments to the
40relevant purchasing body.

(2) A certificate purchase levy is a levy—

(a) charged in respect of supplies of electricity that have been, or
are expected to be, made in each specified period, and

(b) payable in respect of each such period by persons who make, or
45are expected to make, the supplies.

(3) The order may (without limiting the generality of section 32Y(1)(d))
provide for different rates or different amounts of levy to be charged—

(a) in different cases or circumstances;

(b) in relation to different specified periods.

(4) The order may secure that the levy is not to be charged in respect of
particular descriptions of supplies of electricity.

(5) The order may provide for amounts of the levy received in respect of
5any period to be applied for the purpose of discharging the certificate
purchase obligation in another period.

(6) The order may, in particular, make provision about any of the
following matters—

(a) what is a supply of electricity for the purposes of the levy;

(b) 10when a supply of electricity is, or is expected to be, made for
those purposes;

(c) who makes, or is expected to make, a supply of electricity for
those purposes;

(d) the rates or amounts of the levy, or how such rates or amounts
15are to be determined;

(e) payment of the levy, including deadlines for payment in respect
of each period and interest in respect of late payment;

(f) administration of the levy;

(g) audit of information (whether by the administrator of the levy
20or a third party) including requirements for audits to be paid by
the person whose information is subject to the audit;

(h) provision of information, including its provision to third parties
in specified circumstances;

(i) enforcement of the levy;

(j) 25insolvency of persons liable to pay the levy;

(k) reviews and appeals;

(l) the functions of the administrator in connection with the levy.

(7) The administrator of the levy, in the case of persons who make, or are
expected to make, supplies of electricity in Great Britain, is—

(a) 30the Authority, or

(b) such other eligible person as may be designated by the order as
the administrator in the case of such persons.

(8) The administrator of the levy, in the case of persons who make, or are
expected to make, supplies of electricity in Northern Ireland, is—

(a) 35the Northern Ireland authority, or

(b) such other eligible person as may be designated by the order as
the administrator in the case of such persons.

(9) A person is an “eligible person” for the purposes of designation under
subsection (7)(b) if the person is—

(a) 40a CFD counterparty at the time when the designation is made,
or

(b) the Secretary of State.

(10) A person is an “eligible person” for the purposes of designation under
subsection (8)(b) if the person is—

(a) 45a CFD counterparty at the time when the designation is made,
or

(b) the Northern Ireland department.

(11) In a case where a person liable to pay the levy has made any
overpayment or underpayment (whether arising because an estimate
turns out to be wrong or otherwise), provision under subsection (6)(e)
may require the amount of the overpayment or underpayment
5(including interest) to be set off against, or added to, any subsequent
liability of the person to pay the levy.

(12) In a case where the amount received in respect of levy payments for a
period falls short of the amount due for that period, provision under
subsection (6)(e) or (j) may include a requirement on persons liable to
10pay the levy to make further payments, by the time and in the
circumstances specified, of an amount calculated in the manner
specified or determined in accordance with the order.

(13) Provision under subsection (6)(h) may provide for the administrator to
determine the form in which any information that a person is required
15to give is to be given and the time by which it is to be given.

(14) Provision under subsection (6)(i) may—

(a) if the Authority is the administrator, apply sections 25 to 28 in
relation to a requirement in respect of the levy imposed under
the order on a person who is not a licence holder as if the person
20were a licence holder;

(b) in any other case, include provision for the imposition of
penalties if a requirement in respect of the levy is breached
(whether financial or not, but not including the creation of
criminal offences).

32Q 25Use of levy payments

(1) Amounts payable in respect of the certificate purchase levy are to be
paid to the administrator of the levy.

(2) Amounts received by the administrator under subsection (1) must be
paid to—

(a) 30the purchasing body of GB certificates, or

(b) the purchasing body of NI certificates,

in accordance with such provision as may be contained in the order.

(3) Amounts paid to a purchasing body under subsection (2) may be used
by that body only for the purpose of discharging the certificate
35purchase obligation.

(4) The order may contain further provision about—

(a) the calculation of amounts received by the administrator that
are to be paid to a relevant purchasing body;

(b) the time by which the administrator must make payments of
40such amounts to a relevant purchasing body;

(c) the manner in which any such payments are to be made;

(d) how amounts are to be dealt with for the purposes of subsection
(2) where the administrator and a relevant purchasing body to
whom they are to be paid are the same person.

(5) 45Subsections (2) to (4) are subject to subsections (6) to (10).

(6) The order may provide for amounts received by the administrator
under subsection (1) to be used by the administrator to make
payments—

(a) into the Consolidated Fund in respect of costs (or a proportion
5of costs) which have been or are expected to be incurred—

(i) by the Authority,

(ii) by the Secretary of State, or

(iii) by a relevant designated person,

in connection with the performance of functions conferred by or
10under sections 32N to 32Z1;

(b) into the Consolidated Fund of Northern Ireland in respect of
costs (or a proportion of costs) which have been or are expected
to be incurred—

(i) by the Northern Ireland authority, or

(ii) 15by the Northern Ireland department,

in connection with the performance of functions conferred by or
under sections 32N to 32Z1.

(7) For the purposes of subsection (6)(a), “relevant designated person”
means a person who is designated—

(a) 20as the purchasing body of GB certificates by virtue of being an
eligible person within section 32N(6)(a) (CFD counterparty);

(b) as the purchasing body of NI certificates by virtue of being an
eligible person within section 32N(7) (CFD counterparty);

(c) as an administrator of the levy by virtue of being an eligible
25person within section 32P(9)(a) or (10)(a) (CFD counterparty).

(8) The order—

(a) may exclude amounts of a specified description from being
used as mentioned in subsection (6);

(b) may prevent the administrator using amounts to make
30payments in respect of costs of a specified description.

(9) The purchasing body of GB certificates must, if directed to do so by the
Secretary of State, pay into the Consolidated Fund any amounts
received under subsection (2) that it would (but for the direction) be
able to use under subsection (3) for the purpose of discharging the
35purchase obligation in respect of GB certificates.

(10) The purchasing body of NI certificates must, if directed to do so by the
Secretary of State, pay into the Consolidated Fund of Northern Ireland
any amounts received under subsection (2) that it would (but for the
direction) be able to use under subsection (3) for the purpose of
40discharging the purchase obligation in respect of NI certificates.

(11) In this section “the order”, in relation to the certificate purchase levy,
means the certificate purchase order that imposes the levy.

32R Designation of a CFD counterparty as purchasing body or
administrator

(1) 45This section applies in relation to the designation of a person who is a
CFD counterparty—

(a) as a relevant purchasing body under section 32N(4)(b) or (5)(b),
or

(b) as the administrator of the levy under section 32P(7)(b) or (8)(b).

(2) A designation may be made only with the consent of the person
designated.

(3) A designation does not cease to have effect if the person’s designation
5as a CFD counterparty ceases to have effect by virtue of section 7(6)(a)
or (b) of the Energy Act 2013.

(4) A designation ceases to have effect if—

(a) the Secretary of State by order revokes the designation, or

(b) the person withdraws consent to the designation by giving not
10less than 3 months’ notice in writing to the Secretary of State.

(5) The Secretary of State may by order make transitional provision in
connection with a designation ceasing to have effect.

(6) An order under subsection (5) may in particular make provision about
how obligations, imposed by virtue of a certificate purchase order on a
15person whose designation ceases to have effect, are to be discharged in
any period before or after the time when the designation ceases to have
effect.

(7) Subsection (5) is not to be taken as limiting the power to make
transitional provision in a certificate purchase order by virtue of section
2032Y(1)(b).

32S GB certificates

(1) A certificate purchase order may (subject to subsection (3)) provide for
the Authority to issue from time to time, in accordance with such
criteria (if any) as are specified in the order, a certificate (“a GB
25certificate”) to—

(a) the operator of a generating station, or

(b) if the order so provides, a person of any other description
specified in the order.

(2) A GB certificate is to certify—

(a) 30the matters within subsection (4) or (5), or

(b) if the order provides that a certificate may certify the matters
within subsection (6), (7), (8) or (9), the matters within that
subsection.

(3) A GB certificate certifying that an amount of electricity has been
35generated from renewable sources in any period may not be issued if—

(a) a renewables obligation order is in force, and

(b) a renewables obligation certificate has been, or could be, issued
under the order in respect of the generation in that period of the
same electricity.

(4) 40The matters within this subsection are—

(a) that the generating station, or, in the case of a certificate issued
otherwise than to the operator of a generating station, a
generating station specified in the certificate, has generated
from renewable sources the amount of electricity stated in the
45certificate, and

(b) that the electricity has been supplied by an electricity supplier
to customers in Great Britain.

(5) The matters within this subsection are—

(a) that the generating station, or, in the case of a certificate issued
5otherwise than to the operator of a generating station, a
generating station specified in the certificate, has generated
from renewable sources the amount of electricity stated in the
certificate,

(b) that the generating station in question is not in Northern
10Ireland, and

(c) that the electricity has been supplied by a Northern Ireland
supplier to customers in Northern Ireland.

(6) The matters within this subsection are—

(a) that two or more generating stations have, between them,
15generated from renewable sources the amount of electricity
stated in the certificate, and

(b) that the electricity has been supplied by an electricity supplier
to customers in Great Britain.

(7) The matters within this subsection are—

(a) 20that two or more generating stations have, between them,
generated from renewable sources the amount of electricity
stated in the certificate,

(b) that none of them is a generating station in Northern Ireland,
and

(c) 25that the electricity has been supplied by a Northern Ireland
supplier to customers in Northern Ireland.

(8) The matters within this subsection are—

(a) that the generating station, or, in the case of a certificate issued
otherwise than to the operator of a generating station, a
30generating station specified in the certificate, has generated
from renewable sources the amount of electricity stated in the
certificate, and

(b) that the electricity has been used in a permitted way.

(9) The matters within this subsection are—

(a) 35that two or more generating stations have, between them,
generated from renewable sources the amount of electricity
stated in the certificate, and

(b) that the electricity has been used in a permitted way.

(10) For the purposes of subsections (8) and (9), electricity generated by a
40generating station, or generating stations, of any description is used in
a permitted way if—

(a) it is used in one of the ways mentioned in subsection (11), and

(b) that way is specified in the order as a permitted way—

(i) in relation to all generating stations, or

(ii) 45in relation to generating stations of that description.

(11) Those ways are—

(a) being consumed by the operator of the generating station or
generating stations by which it was generated;

(b) being supplied to customers in Great Britain through a private
wire network;

(c) being provided to a distribution system or a transmission
system in circumstances in which its supply to customers
5cannot be demonstrated;

(d) being used, as respects part, as mentioned in one of paragraphs
(a), (b) or (c) and as respects the remainder—

(i) as mentioned in one of the other paragraphs, or

(ii) as respects part, as mentioned in one of the other
10paragraphs and as respects the remainder as mentioned
in the other;

(e) being used, as respects part, as mentioned in paragraph (a), (b),
(c) or (d) and as respects the remainder by being supplied by an
electricity supplier to customers in Great Britain or by a
15Northern Ireland supplier to customers in Northern Ireland, or
both.

(12) Subsection (11) of section 32B (meaning of supply of electricity through
a private wire network) applies for the purposes of subsection (11)(b)
as it applies for the purposes of subsection (10)(b) of that section.

32T 20NI certificates

(1) A certificate purchase order may (subject to subsection (3)) provide for
the Northern Ireland authority to issue from time to time, in accordance
with such criteria (if any) as are specified in the order, a certificate (“a
NI certificate”) to—

(a) 25the operator of a generating station in Northern Ireland, or

(b) if the order so provides, a person of any other description.

(2) A NI certificate is to certify—

(a) the matters within subsection (4), or

(b) if the order provides that a certificate may certify the matters
30within subsection (5), (6) or (7), the matters within that
subsection.

(3) A NI certificate certifying that an amount of electricity has been
generated from renewable sources in any period may not be issued if—

(a) an order under Article 52 of the Energy (Northern Ireland)
35Order 2003 is in force, and

(b) a Northern Ireland RO certificate has been, or could be, issued
under that order in respect of the same electricity.

(4) The matters within this subsection are—

(a) that the generating station, or, in the case of a certificate issued
40otherwise than to the operator of a generating station, a
generating station in Northern Ireland specified in the
certificate, has generated from renewable sources the amount of
electricity stated in the certificate, and

(b) that it has been supplied by a Northern Ireland supplier to
45customers in Northern Ireland.

(5) The matters within this subsection are—

(a) that two or more generating stations in Northern Ireland have,
between them, generated from renewable sources the amount
of electricity stated in the certificate, and

(b) that it has been supplied by a Northern Ireland supplier to
5customers in Northern Ireland.

(6) The matters within this subsection are—

(a) that the generating station, or, in the case of a certificate issued
otherwise than to the operator of a generating station, a
generating station in Northern Ireland specified in the
10certificate, has generated from renewable sources the amount of
electricity stated in the certificate, and

(b) that the electricity has been used in a permitted way.

(7) The matters within this subsection are—

(a) that two or more generating stations in Northern Ireland have,
15between them, generated from renewable sources the amount
of electricity stated in the certificate, and

(b) that the electricity has been used in a permitted way.

(8) For the purposes of subsections (6) and (7), electricity generated by a
generating station, or generating stations, of any description is used in
20a permitted way if—

(a) it is used in one of the ways mentioned in subsection (9), and

(b) that way is specified in the order as a permitted way—

(i) in relation to all generating stations, or

(ii) in relation to generating stations of that description.

(9) 25Those ways are—

(a) being consumed by the operator of the generating station or
generating stations by which it was generated;

(b) being supplied to customers in Northern Ireland through a
private wire network;

(c) 30being provided to a distribution system located in Northern
Ireland, or to transmission system located in Northern Ireland,
in circumstances in which its supply to customers in Northern
Ireland cannot be demonstrated;

(d) being used, as respects part, as mentioned in one of paragraphs
35(a), (b) or (c) and as respects the remainder—

(i) as mentioned in one of the other paragraphs, or

(ii) as respects part, as mentioned in one of the other
paragraphs and as respects the remainder as mentioned
in the other;

(e) 40being used, as respects part, as mentioned in paragraph (a), (b),
(c) or (d) and as respects the remainder by being supplied by a
Northern Ireland supplier to customers in Northern Ireland.

(10) Paragraph (9) of Article 54 of the Energy (Northern Ireland) Order 2003
(meaning of supply of electricity through a private wire network)
45applies for the purposes of subsection (9)(b) as it applies for the
purposes of paragraph (8)(b) of that Article.

32U Sections 32S and 32T: supplemental provision

(1) A certificate purchase order may provide—

(a) that no certificates are to be issued in respect of electricity
generated in specified cases or circumstances, or

(b) that certificates are to be issued in respect of a proportion only
of the electricity generated in specified cases or circumstances.

(2) 5In particular, provision made by virtue of subsection (1) may specify—

(a) electricity generated using specified descriptions of renewable
sources,

(b) electricity generated by specified descriptions of generating
station, or

(c) 10electricity generated in specified ways.

(3) Provision made by virtue of subsection (1)(b) may include—

(a) provision about how the proportion is to be determined;

(b) provision about what, subject to such exceptions as may be
specified, constitutes sufficient evidence of any matter required
15to be established for the purpose of determining that
proportion;

(c) provision authorising the relevant authority, in specified
circumstances, to require an operator of a generating station to
arrange—

(i) 20for samples of any fuel used (or to be used) in the
generating station, or of any gas or other substance
produced as a result of the use of such fuel, to be taken
by a person, and analysed in a manner, approved by the
relevant authority, and

(ii) 25for the results of that analysis to be made available to the
relevant authority.

(4) In the case of electricity generated by a generating station fuelled or
driven—

(a) partly by renewable sources, and

(b) 30partly by fossil fuel (other than waste which constitutes a
renewable source),

only the proportion attributable to the renewable sources is to be
regarded as generated from such sources.

(5) A certificate purchase order may specify—

(a) 35how the proportion referred to in subsection (4) is to be
determined, and

(b) the consequences for the issuing of certificates if a generating
station of the type mentioned in that subsection uses more than
a specified proportion of fossil fuel during a specified period.

(6) 40Those consequences may include the consequences that no certificates
are to be issued in respect of any electricity generated by that
generating station during that period.

(7) A certificate purchase order may provide that ownership of a certificate
may be transferred—

(a) 45only to persons of a specified description;

(b) only if other specified conditions are met.

(8) A certificate purchase order may specify circumstances in which the
relevant authority may revoke a certificate before the certificate

purchase obligation in respect of the certificate is discharged (whether
before or after the certificate is presented for payment).

(9) A certificate purchase order must—

(a) prohibit the issue of GB certificates certifying that electricity has
5been supplied to customers in Northern Ireland by virtue of
section 32S(5) or (7) where the Northern Ireland authority has
notified the Authority that it is not satisfied that the electricity
in question has been supplied to customers in Northern Ireland,
and

(b) 10require the revocation of such a certificate if the Northern
Ireland authority so notifies the Authority at a time between the
issue of the certificate and its presentation for payment for the
purposes of the certificate purchase obligation.

(10) A certificate purchase order may make provision requiring a person to
15whom a certificate is issued to pay to the relevant authority an amount
equal to any amount that has been paid in respect of the certificate
under the certificate purchase obligation if it appears to the authority
that—

(a) the certificate should not have been issued to that person, and

(b) 20it is not possible to secure the recovery of such an amount by
refusing to issue another certificate to the person.

(11) Provision under subsection (10) may include provision about
enforcement and appeals.

(12) The Authority must pay any amounts it receives by virtue of subsection
25(10) into the Consolidated Fund.

(13) The Northern Ireland authority must pay any amounts it receives by
virtue of subsection (10) into the Consolidated Fund of Northern
Ireland.

32V Certificate purchase orders: amounts of electricity stated in certificates

(1) 30A certificate purchase order may specify the amount of electricity to be
stated in each certificate, and different amounts may be specified in
relation to different cases or circumstances.

(2) In particular, different amounts may be specified in relation to—

(a) electricity generated from different renewable sources;

(b) 35electricity generated by different descriptions of generating
station;

(c) electricity generated in different ways.

(3) In this section “banding provision” means provision made in a
certificate purchase order by virtue of subsection (1).

(4) 40Before making any banding provision, the Secretary of State must have
regard to the following matters—

(a) the costs (including capital costs) associated with generating
electricity from each of the renewable sources or with
transmitting or distributing electricity so generated;

(b) 45the income of operators of generating stations in respect of
electricity generated from each of those sources or associated
with the generation of such electricity;